Bangkok--8 Feb--Central Group
Short- and Long-Term Strategies to Meet Challenge 2011 revealed — to “renovate, improve, seek allies for mergers, enhance value, add new branches, develop new channels, and expand business internationally, while being socially responsible”
Outstanding 2010 Performance Exceeding Target with 119,000 million Baht Sales and 8% Growth
Today Central Group led by Mr. Sudhitham Chirathivat, Executive Chairman, together with Executive Directors of CEO Management Board, announced that the Group would invest not less than 20,000 million Baht on new projects and set a growth target of 12%, projecting sales in 2011 at 133,500 million Baht. The short- and long-term strategies of the Group to meet their Challenge 2011 were also revealed: “to renovate, improve, seek allies for mergers, enhance value, add new branches, develop new channels, and expand business internationally, while being socially responsible”. The Group’s business performance in 2010 was outstanding with over 119,000 million Baht total sales or 8% year-on-year growth, despite being affected by the global economic crisis and domestic political situation that culminated in the closure of CentralWorld Plaza for over 9 months as well as closing down of ZEN Department Store for reconstruction.
Said Mr. Sudhitham Chirathivat, Executive Chairman of Central Group of Companies, “In 2010 many incidents happened especially the historic crisis leading to the “aftershock” that inflicted retail trade and related business. It is only because of the experience and fortitude of Central Group, the solidarity of management and staff, as well as the continued strong support for the business of Central Group by our customers, that we have managed to pull through. The main policy and strategy in future will draw much from the important lessons learned and our steps ahead, in 2011 and beyond, will be another major testing time in our course of doing business. Thus it is “Our Challenge 2011” — to prepare to change crisis into opportunity and stride forward, stronger and firmer”.
“The overall picture of the state of economy this year shows signs of recovering, which should be conducive to investment. Despite the lingering political rift and domestic turbulence, we hope the Government’s policy and economic stimulus package would help to reduce the cost of living and increase consumption. Central Group is prepared to cooperate with all sections of society to organize activities and projects to promote and restore confidence of consumers and our trading partners. And in order for Central Group to achieve the growth target, we have adhered to the principle of dedicating ourselves to working for the Company with morality, integrity, fairness, and ethical business practices to attain sustainable stability,” said Mr. Sudhitham.
Central Group has set a business policy for 2011 to focus on ”renovation, improvement, seeking allies for mergers, enhancing value, adding new branches, developing new channels, and expanding business internationally, while being socially responsible”. The business strategies of Central Group this year are divided into short-term strategy and long-term strategy.
As for short-term business strategy or dealing with the businesses affected by the “aftershock” event, the Group is prepared to restore confidence of trading partners and customers by committing to building up our strength and turning the problem or crisis into opportunity to learn, review and avert future problems with due caution. We shall continue to provide services to our trading partners and customers at the level of international standards with corporate governance for the pride and sustainable stability of Thai society and the country. Our course of action will include adding functions of the Crisis Management Board to include responsibility for solving problems or mitigating impacts from incidents.
Regarding long-term business strategy, the Group still pursues continuous business growth with
M&A (Mergers & Acquisitions) which is a key strategy that has enabled Central Group to succeed by leaps and bounds. The Group will consider factors advantageous to the business and the Group that result in synergy that produces the most cost effective use of available resources and thus effective and efficient reduction of cost and expenditure. Value added. Central Group aims to create business value by bringing together the body of knowledge, know-how and experience to develop various projects and enhance them with value added, e.g. expanding new channels of distribution to better match with consumer lifestyle like online shopping (www.central.co.th) and direct sale.Development through domestic and international business expansion. One mission of CMB in managing business of the Group is to build up the organization into becoming a well recognized institution both at home and abroad, therefore CRC plans to continue investing on expansion in 2011 and also to invest in business in China to pioneer Thai retail business in a foreign country because PRC is a large country with large population, continuously growing economy and similar culture and custom to Thailand. It is widely known that the Group launched a Central Department Store there last May.
In 2011 Central Group still plans to continue business expansion, e.g. launching Central Embassy Project on the land plot purchased from the British Embassy, adding 4 new branches of CentralPlaza — Chiangrai, Phitsanulok, Rama IX, and Suratthani — and also Central Festival Chiangmai. The Group will also carry out major facelifts of CentralWorld Plaza, ZEN Store, ZEN Tower, CentralPlaza Ladprao and CentralPlaza Udonthani. New project investments in locations with high potential e.g. in Chiang Rai, Phitsanulok, Rama IX, Bang Khae. Investment in Tops Daily. Plus investment in renovation of the various branches of every Brand to keep their appearances fresh and modern. Foreign branch expansion will include opening Central Department Store and ZEN Department Store in Shenyang, China. Plan to study further investment in China. Plan to provide management service by contract for 8—10 Hotels in Thailand, selecting only good quality hotels of appropriate sizes to begin with. Continued investment in the Centara Grand Beach Resort Phuket Project.
Moreover, investment will be made in new Brands, viz. The Terrace, Cold Stone and Chabuton and addition of new branches of KFC, Mister Donut and Auntie Anne’s.
Regarding Corporate Social Responsibility (CSR), this year the Group will still follow the master plan in the 4 areas, i.e. art & culture, social equity, the environment, and sufficiency economy. In 2011 the Group will ensure that CSR actions to help society in education, charity and the environment are more effective with tangible results. And as this year is the Auspicious Year for Thailand in which His Majesty the King will reach 84 Years of Age, Central Group will cooperate in organizing activities to join in the Celebrations of this Special Occasion with the Government and Thai people.
Regarding investment, in 2010 the 5 Core Businesses of Central Group, viz. Retail Business (CRC), Real Estate Development (CPN), Trading & Marketing (CMG), Hotels (CHR), and Restaurants Group (CRG) altogether spent a total of about 12,700 million Baht on investment — mostly on real estate development, both new projects and improvements of existing properties. New projects included Hilton Hotel, Pattaya, open from 29 November 2010, as annexe to Central Festival Pattaya Beach; CentralPlaza Chiangrai which will open in March 2011 and CentralPlaza Rama IX which is expected to open in early December 2011. There was major renovation of CentralWorld, the Office Tower at CentralPlaza Ladprao and investment in Centara Grand Beach Resort Phuket — a new hotel.
As for business performance in 2010, the 5 Core Businesses of Central Group achieved total sales of 119,000 million Baht amounting to 8% year-on-year growth.
In 2010 Some of the accolades given to Central Group included: CentralWorld received “Best-of-the-Best Award 2010 from International Council of Shopping Centers (ICSC); Central Department Store was nominated in the Global Department Store Summit 2010 in New York, USA to be among the Top 5 “Department Stores of the Year”; TRIS Rating has affirmed the company rating of CPN and the ratings of its existing debentures at “A+” with “stable” outlook, reflecting CPN’s leading position in Thailand’s retail property development market; and Centara Grand at CentralWorld was selected “Best Meetings and Conventions Hotel” at the TTG Travel Awards 2010.
For more information please call Kun Molthip Janethammapat
Tel .02-254-7007 ext 2771 Email:
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